Freight forwarders switch from container to bulk ships

Ocean carriers could be in line for profits of $100bn this year and look assured of continued medium term profitability as capacity remains an issue globally in a market described as “crazy”. The Loadstar reports a substantial upgrade of Drewry’s quarterly Container Forecast report from an ebit (earnings before interest and tax) figure of $35bn to $80bn this year.
Senior manager of container research and author of the report Simon Heaney, said: “If freight rates surpass expectations in the remainder of the year, we would not be surprised to see an annual profit line in the region of $100bn.”
Incidents such as the Ever Given Suez grounding and Yantian port restriction have helped fuel a market where triple digit annual growth figures for spot rates are no longer surprising, Heaney said. Although Drewry expects ebit to drop by a third next year, it still predicts industry profits of almost $70bn.